Plant Health Care PLC (AIM: PHC) said its US unit has received a further order for its harpin seed treatment from Monsanto Co (NYSE: MON) which significantly increases the overall quantity for the 2010 growing season.
In December 2008, Plant Health Care announced the agreement with Monsanto for the commercialisation of harpin-based technology as a seed treatment in the US group’s major row crops and vegetables.
The total size of the orders which have now been received by Plant Health Care far exceed the top of its range of expectations for the first year of its long term agreement with Monsanto.
Under the agreement Monsanto has the exclusive rights to commercialise harpin seed treatment technology in corn, soybeans, cotton, canola and selected vegetables. In return, Plant Health Care will receive ongoing fees based on the total volume of harpin ordered.
Harpin is a class of proteins produced in nature by certain bacterial plant pathogens. It elicits a protective response in the plant that makes it resistant to a wide range of fungal, bacterial, and viral diseases. Because Harpin does not interact directly with disease pests, these organisms are not expected to develop resistance to it.